How to deal with the other party’s default deposit
In daily life and business activities, deposits are a common form of performance guarantee and are widely used in scenarios such as renting houses, purchasing cars, and service contracts. However, when the other party defaults, the handling of the deposit often becomes a focus of dispute. This article will combine recent hot cases and legal provisions to provide you with a detailed analysis of the handling of deposits when the other party defaults, and provide structured data reference.
1. Legal nature of deposits and common breach of contract situations

A deposit is money paid by one party to a contract to the other party to guarantee the performance of the contract. If the other party breaches the contract, part or all of the deposit may be deducted. The following are typical cases of deposit default that have been hotly discussed on the Internet in the past 10 days:
| scene | breach of contract | Processing results |
|---|---|---|
| rent a house | Tenant quits the lease early without giving advance notice | The landlord deducts 30%-50% of the deposit |
| E-commerce services | The merchant did not deliver the goods on time | The platform forces a refund of the deposit and compensation |
| vehicle rental | The renter damaged the vehicle and failed to repair it | The deposit will be fully deducted for repairs |
2. Legal procedures for deposit processing
According to Article 587 of the Civil Code, the following steps must be followed for deposit processing:
| steps | Operation content | Legal basis |
|---|---|---|
| 1 | Confirm the fact of breach of contract and retain evidence | Contract terms, chat records, etc. |
| 2 | Notify the other party in writing of the breach | Article 588 of the Civil Code |
| 3 | Negotiate or mediate through a third party | Consumers Association, People's Mediation Committee |
| 4 | initiate litigation or arbitration | Article 23 of the Civil Procedure Law |
3. Rights protection matters needing attention
1.Clarity of contract terms: The standard for deposit deduction must be clearly stipulated in the contract, as vague terms can easily lead to disputes. For example, a rental platform recently received collective complaints from users due to "unclear standards for deducting health fees."
2.evidence preservation: It is necessary to retain transfer records, contract text, and evidence of breach of contract (such as photos of house damage, screenshots of logistics delays, etc.).
3.Timeliness: The statute of limitations for claiming deposit return is 3 years, calculated from the date of breach of contract.
4. Analysis of hot events
Recently, a car-sharing platform has been on the hot search for "high non-refundable deposits", and its handling method is as follows:
| User complaints | Platform response | final solution |
|---|---|---|
| Deposit refund timeout is 30 days | system delay | Additional 10% liquidated damages |
| Deduction of deposit without reason | Vehicle loss not declared | Refund the difference after third-party evaluation |
5. Summary and suggestions
1.Precautions beforehand: Clarify the deposit terms when signing the contract, including return conditions, deduction ratio and dispute resolution method.
2.Communicate during the matter: Prioritize negotiation after a breach of contract to avoid intensifying conflicts.
3.Rights protection afterwards: If the negotiation fails, you can file a lawsuit with the market supervision department (12315) or the court. Recent data shows that the winning rate of deposit dispute cases reaches 72%, and the key lies in the adequacy of evidence.
Through the above structured analysis and data reference, we hope to help you efficiently handle the issue of deposit default and safeguard your legitimate rights and interests.
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